Any further advance in Australian Dollar (AUD) is likely limited to a test of 0.6560; the major resistance at 0.6580 is not expected to come under threat. In the longer run, AUD is likely to edge higher within a higher range of 0.6490/0.6580, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Major resistance at 0.6580 is not expected to come under threat

24-HOUR VIEW: "Yesterday, when AUD was at 0.6495, we noted 'a tentative buildup in upward momentum'. We held the view that AUD 'could edge higher, potentially breaking above 0.6515'. We did not expect upward momentum to accelerate so quickly, as AUD soared to a high of 0.6540. Further AUD strength is not ruled out, but the rapid rise appears excessive, and any advance is likely limited to a test of 0.6560. We do not expect the major resistance at 0.6580 come under threat. On the downside, support levels are at 0.6520 and 0.6510."

1-3 WEEKS VIEW: "Last Wednesday (05 Nov, spot at 0.6485), we highlighted that 'the outlook for AUD is negative now, but last month’s low near 0.6445 may not come into view so soon'. After AUD struggled to extend its decline, we highlighted yesterday (10 Nov, spot at 0.6495) that 'a break above 0.6515 would mean that 0.6445 is not coming into view'. We did not expect AUD to rise sharply to a high of 0.6540. There has been an increase in momentum, but not much. From here, we expect AUD to edge higher, but we view any advance as part of a higher range of 0.6490/0.6580. To look at it another way, currently, AUD does not appear to have enough momentum to break clearly above 0.6580."